Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
~1~
~2~
CERTIFICATE
This is to certify that Rajbir Singh Bhatia assigned the research project on Role of technology
in financial advisory business study on various topics in Role of technology in financial
advisory business. He has submitted this project report in accordance with the guide lines. To
the best of my knowledge this is his original work and not submitted elsewhere for reward of any
other degree or any diploma.
DATE
PROJECT GUIDE
Anurag Tripathi
~3~
ACKNOWLEDGEMENT
An individual cannot do project of this scale. I take this opportunity to express my
acknowledgement and deep sense of gratitude to the individuals for rendering valuable assistance
and gratitude to me. Their inputs have played a vital role in success of this project.
I express my sincere thanks to my project guide Anurag Tripathi her generous support, constant
direction and mentoring at all stages of training. I take this opportunity to thank all dealers,
customers who spared their precious time to provide me with valuable inputs for project without
which it would have not been possible.
I firmly believe that there is always a scope of improvement. I welcome any suggestions for
further enriching the quality of this report.
~4~
Executive Summary
The main purpose to selecting NJ India for summer training is that being in MARKETING field.
It is difficult to sell a physical product and NJ India Investment which sells a non-physical
product or we can say financial product like; Mutual funds & Insurance is even more difficult to
sell. So we want to know the overall working of NJ India Investment PVT.LTD and to accept the
challenges in the field. The main task of at NJ India Invest Pvt. Ltd is recruitment and
development of the Advisor which brings a client. The main competitor of NJ INDIA INVEST is
Prudent Company which is incorporated after NJ India Investment. NJ AUM is 15000+ Crores.
There are also some small players which sales mutual funds. Talking about this types industry we
can say that it is in growth stage in India. From this study we found some finding which
includes:
1) Very less wealth advisor as compare to insurance advisor
2) There is much untapped market which is due to fewer advisors.
3) People are not aware about mutual funds
4) People think that it is only a SHARE MARKET which is dealing in equity only which is totally
wrong. Our task was to convince them for the one to one meet with our unit manager Mr. Mayur
Trambadia and make them aware about wealth advisor business model. We also come to know
about systematic investment plan (SIP) the benefit of this is removers the confusion of which is
right time to invest in a share market which will yield a higher returns because the returns is
being average out whenever the market is at high and low. Other benefits are also that this SIP
starts with minimum amounts of Rs 500 which an ordinary people can afford. Overall experience
of this summer training at NJ INDIA INVEST PVT.LTD, Janakpuri Branch was very good. In
future also we are expecting their co-operation
Role of technology in financial advisory business is the process of assessing financial goals of
individual, taking an inventory of the money and other assets which the person have, determine
life goals and then take necessary steps to achieve goals in the stipulated period. It is a method of
quantifying a persons requirement in terms of money.
It was a great opportunity to work with ADA Group, Indias leading business group. Reliance
Money a subsidiary of Reliance Capital is among top financial companies. We will get to know
the organizational structure and various business models of the company.
~5~
~6~
Table of Contents
~7~
~8~
Industry Study
1. INTRODUCTION:Success is a journey, not a destination. If we look for examples to prove this quote then we
can find many but there is none like that of NJ India Invest Pvt. Ltd. Back in the year 1994, two
people created history by establishing NJ India Invest Pvt. Ltd. leading advisors and distributors
of financial products and services in India.
NJ prides in being a professionally managed, quality focused and customer centric organization.
The strength of NJ lies in the strong domain knowledge in investment consultancy and the
delivery of sustainable value to clients with support from cutting-edge technology platform,
developed in-house by NJ.
NJ has over 8,600* NJ Funds Network Partners and over 15000* normal advisors
associated with Nj. NJ presently has over Rs. 10000* Crores of assets under advice. NJ has over
130* PSCs (Partner Service Centers) in 22* states spread across India. The numbers are
reflections of the trust, commitment and value that NJ shares with its clients.
NJ prides in being a professionally managed, quality focused and customer centric organisation.
The strength of NJ lies in the strong domain knowledge in investment consultancy and the
delivery of sustainable value to clients with support from cutting-edge technology platform,
developed in-house by NJ.
At NJ they believe in
having single window, multiple solutions that are integrated for simplicity and sapience
making innovations, accessions, value-additions, a constant process
providing customers with solutions for tomorrow which will keep them above the curve,
today
~9~
NJ India
Invest Pvt.ltd
NJ Fundz
Network
NJ Wealth
Advisors
NJ India
Realty
NJ Gurukul
Mission
Ensure creation of the desired value for their customers, employees and associates, through
constant improvement, innovation and commitment to service & quality. To provide solutions
which meet expectations and maintain high professional & ethical standards along with the
adherence to the service commitments.
NJ believes in 360 Advisory Platform philosophy
~10~
BUSINESS OBJECTIVES:
To provide training and platform to the prospects to clear AMFI certification to get them
certified as mutual fund advisors.
To provide independent advisors and firms with integrated, comprehensive and practical
business solutions.
To provide the advisors and firms with complete insights, strategies and tools to bring
significant growth in business.
Organization Structure
Company history
ABOUT FUNDS, PRODUCTS AND ITS CORE VALUES PRODUCTS
~11~
can
also experience
the
educational activities for enhancing the entire team at NJ . NJ also believes in the Learning
through Responsibility concept for its employees.
For people
at NJ success
is
Culture
At NJ we believe in transforming the lives of our customers. We exist to create a difference
a
change
dream of
towards
transforming
NJ
are
doing so.
We believe in keeping You First, providing you with products and services that meet your
stated and unstated needs. Client satisfaction and client service is the Mantra we constantly
recite. This service oriented philosophy runs throughout the organization, from top to bottom.
Employees are given ample freedom in their work. The objective is to keep an open, healthy
environment with ample
solutions
Our efforts are constantly engaged in improving our existing services, offering new and
innovative solutions that go beyond your expectations. This focus has made us one of the
most respected and preferred service providers, especially in the mutual fund industry.
~13~
SBI Mutual
Tata Mutual
~14~
SWOT ANALYSIS:
S: STRENGTH:
Tie up with all leading mutual fund and capital investment companies
W: WEAKNESSES:
Low initial returns from mutual funds of 2-3% compared to 15 to 35% for the advisors.
Wide varieties of more than 900 mutual fund products very tough to find the ideal
product for investment.
O: OPPORTUNITIES:
Very few mutual fund advisors and huge demand for them
~15~
T: THREATS:
Many domestic and global companies are interested to enter due to vast untapped market.
is
the
Business. At
key
NJ they
to unlocking
understand
customer
this
very
satisfaction, which
well. NJ
has set
in
place to
delivered service to customers. AT NJ strict quality service standards are set and a well defined
established and followed religiously by their quality customer service team.
quality
service
people in
addition
to processes. NJ gives
delivery chain.
Further Wealth:
Have well-defined Privacy Policy to keep clients information confidential & internal
done on the same at regular intervals.
Receive various statistics which are analyzed on an ongoing basis to improve the
standards.
~16~
in the
industry.
NJ service commitment..
The service commitments are to guide the actions of
stated
Customers can freely communicate any such action /events wherein they feel that any Of
the commitments have been breached/ compromised . At NJ they desire to honors their
commitments all points of the time and to all their customers without any bias.
To provide customer-focused need-based valued services.
To provide reliable, accurate and timely information.
To maintain all records in privacy.
To optimize services/benefits at least justifiable cost.
To develop and grow the customers business.
To provide constructive after sales service.
services that
ensure they stay informed, insightful, in command, of their investments at all times.
~17~
5.Real Estate
In addition to the INVESTMENT products, NJ Partners and clients also have access to
the real estate properties across India. NJ regularly enters into tie-ups with leading
developers in India for distribution of their products.
~18~
Services provided by NJ
~19~
~20~
~21~
~22~
~23~
~24~
~25~
~26~
~27~
~28~
Project Title
Role of technology in financial advisory business
~29~
Signature:
Place: Delhi
~30~
~31~
Introduction
.
Technology in NJ
Technology has been and is our key strength. What they offer on the technological front is
unique and comprehensive. Their focus can be gauged from the fact that they have a seperate
sister concern started for the sole purpose of providing the best support to NJ in terms of
technology. High infrastructural spending is done to improve & strengthen their deliverables on
this technological front. Finlogic Technologies (India) Pvt. Ltd. does all the development work
in-house on a continuous basis through its team of talented professionals. All the tools, services,
products, etc offered by NJ have been developed in-house according to what they feel.
In todays world much is dictated by two important words Information and
Technology. NJ realizes this more than anyone else. And thats why they make constant efforts
to keep themselves ahead of the curve and ensure that their client receive quality, accurate and
timely information.
But technology by itself cannot make a difference. Only when technology is combined
with strong domain knowledge and understanding of customer needs, can it truly help in
making a significant difference. And this is what NJ has achieved and aims to continue doing so.
NJ Total Technology Solution
Centralized Online Automatic Advisor Account (Partners Desk) for Management, MIS,
Portfolio Access, etc
against other distributors. NJ, with very strong domain knowledge especially in mutual funds,
~32~
Details of transaction of any nature in Mutual Funds by any client, through our
Associates or us, on a Daily basis
NAV, Dividend, and other details of all the Mutual Fund schemes on a Daily basis
Monthly Portfolio and other important information of all the Mutual Fund schemes
All relevant details of Direct Equities like Prices, Dividends, Bonus, Market
Capitalizations, etc on a Daily basis
All the data is effectively stored and managed at NJ and the same in used in providing you and
your clients with up-to-date information and reports.
~33~
~34~
Methodology
Research Design
The study is about to find various avenues available for an individual to invest and ways to
achieve long term and short term financial goals through financial planning. It intend to study the
pattern in which individual allocates his savings in various asset class. It describes the awareness
of investor about various alternatives available to them. It also aims at creating awareness of
financial planning.
The data required for the study would be acquired through personal interview and questioner and
it was collected by means of cold calling (Cold calling is the process of approaching prospective
customers or clients, who were not expecting such an interaction),and the research period was
spread out in twenty days. For this purpose researcher choose New Delhi area, where researcher
could find enough educated office going people, which will help us getting better understanding
of how financial planning is done.
Secondary data means data that are already available i.e., the data which is already collected
and analyzed by other. To get a better understanding and to have a larger exposure on the subject
this method was used. Methods use was data available on World Wide Web, articles in
newspapers, financial industry reports, Financial Planning board of India reports and article,
reports published by Government of India, etc. Support was also provided by the project guide
by giving inputs from his years of experience.
Sample Design
Sample design was based on principles of sample survey. Sample was decided on socio
demographic factors such as income and age group. The number of respondent was restricted to
50 due to lack of time. Sampling unit was geographical unit where the research was carried in
NEW DELHI. Source list for respondents was not predetermined it was on random basis. The
various parameters on which the research was to be conducted are:
Awareness of financial Planning
Alignment of life goals and financial goals
Investment distribution in various asset classes
Decision influencing investment
Choosing qualitative or quantitative research methodologies
Your research will dictate the kinds of research methodologies you use to underpin your work
and methods you use in order to collect data. If you wish to collect quantitative data you are
probably measuring variables and verifying existing theories or hypotheses or questioning them.
Data is often used to generate new hypotheses based on the results of data collected about
different variables. Ones colleagues are often much happier about the ability to verify
quantitative data as many people feel safe only with numbers and statistics.
~36~
Interviews
Interviews enable face to face discussion with human subjects. If you are going to use interviews
you will have to decide whether you will take notes (distracting), tape the interview (accurate but
~37~
Draw up a set of questions that seem appropriate to what you need to find out.
Pilot them, and then refine the questions so that they are genuinely engaged with your
research object.
Contact your interviewees and ask permission, explain the interview and its use.
Transcribe.
Thematically analyze results and relate these findings to others from your other research
methods.
Questionnaires
Questionnaires often seem a logical and easy option as a way of collecting information from
people. They are actually rather difficult to design and because of the frequency of their use in all
contexts in the modern world, the response rate is nearly always going to be a problem (low)
unless you have ways of making people complete them and hand them in on the spot (and this of
course limits your sample, how long the questionnaire can be and the kinds of questions asked).
As with interviews, you can decide to use closed or open questions, and can also offer
respondents multiple choice questions from which to choose the statement which most nearly
describes their response to a statement or item. Their layout is an art form in itself because in
poorly laid out questionnaires respondents tend, for example, to repeat their ticking of boxes in
the same pattern. If given a choice of response on a scale 1-5, they will usually opt for the middle
point, and often tend to miss out subsections to questions. You need to take expert advice in
setting up a questionnaire, ensure that all the information about the respondents which you need
is included and filled in, and ensure that you actually get them returned. Expecting people to pay
to return postal questionnaires is sheer folly, and drawing up a really lengthy questionnaire will
also inhibit response rates. You will need to ensure that questions are clear, and that you have
reliable ways of collecting and managing the data. Setting up a questionnaire that can be read by
~39~
Draw up a list of appropriate questions and try them out with a colleague
Pilot them
Ensure questions are well laid out and it is clear how to 'score them' (tick, circle, delete)
Ensure they put their names or numbers on so you can identify them but keep real names
confidential
~41~
~42~
Almost 70% of respondent was from age group 21yrs to 45yrs this is considered to be most
active age group. During this age, life of an individual changes very drastically. The career is in
growing stage in starting few years and there are hardly any responsibilities, at this time there is
a lot of funds available for disposal. It is this age where maximum risk can be taken and a greater
period can be given to grow the amount invested. As a person enter into their 30s they have
increased family responsibility and gradually the risk taking ability reduces with the age. With a
greater portion of such population included in data collection a greater degree of understanding
can be gained how financial planning is done by young India.
~43~
Financial planning is about assessing our present cash flows; estimating the required cash flow
after a certain period of time and to determine the steps required to achieve this over a period.
The amount of disposable income at hand determines various investment decisions. It also helps
in making tax plans so that maxim benefit can be gained through various tax exemptions. So it is
necessary to know the income inflow of an individual. The above graph shows that a major
portion of respondent are in income slab of up to Rs.2,00,000 p.a.; this indicates that the persons
may be in the beginning stage of career. With increasing income slab the no of respondent are
reduced.
3) Person willingness to take risk according to age
~44~
The investment decisions are more based on the willingness to take the risk rather than the ability
to take risk. The above graph describes the willingness to take risk at various life stages. At the
younger age people are more willing to take risk which reduces over the years as responsibility
increase. Although different individual may have different preferences which could contradict
their age. Many a time investment is a function of willingness rather than ability which is clearly
described by above graph.
A fair idea of asset allocation of individuals in various asset classes can be observed through this.
It was observed that the all respondent had a life cover policy. This shows that the basics of
financial planning were achieved. The next major portion was Provided Fund due to it being
more secure investment and also tax exemption offered. Major investments were also made in
Bank Fixed Deposits and Post Office Deposits. Equity was not a preferred investment among
many due to its volatile nature but many used it as a long term investment by investing in large
companies. Investment in gold was more in form of jewelry which is not a good option as
investment. Very few invested in gold coins/bars and Gold ETFs.
A major portion of respondent was unsatisfied with the returns they got on their investment. This
reflects that investment decision was not taken properly. Few common reasons cited were:
o
o
o
o
Also a major portion of investment was in assets which has a low risk low returns category.
This also was a major reason of respondent unsatisfied with current returns.
6)
~47~
Findings
1. Strong lineage and commitment to the business
Since its birth in 1994, NJ Group has grown into a diversified business group in the last
21 years. The business of financial products distribution is the flagship business of the
group and it remains at the heart of NJ Group. The management and team at NJ share a
very strong vision for the business and are committed to further strengthen and expand.
NJ Wealth also gets complemented and benefited with the growing presence of NJ Group
in other businesses.
2. Customer Centric Approach
The work culture of NJ Wealth is geared towards helping customers win with solutions
covering all critical areas of success. Be it NJ Wealth Partners or their customers, NJ's
continuous focus has been to design, deliver and enrich our value-proposition in areas of
product & service offerings, operational excellence, service quality, technology,
governance and more. The business and wealth management ideas and strategies
propagated at NJ are also centered around sound, proven principles that serve the best
interests of the customers. With the continued trust of our customers, we are confident to
steadfastly maintain the course of building strong customer relationships and experience.
3. Effective use of technology
At NJ we have constantly tried to see technology as an enabler to meaningfully deliver
the most critical and relevant needs first. With our rich experience, understanding and an
in-house team we have custom built our entire platform to match customer needs. Our
integrated technology setup covers a gamut of business areas including customer
offerings like online desks to the critical operations processes and all important areas of
business management. NJ also has adapted global standards and best practices in
information security, customer privacy and network, infrastructure management. The
effective use of technology has helped us to manage the business growth and deliver
solutions in a reliable, effective and secured fashion.
~48~
~49~
Conclusions
The Saving behavior has been changed considerably over the last couple of years. The savings
rate in India is comparatively higher than various other countries. Earlier the trend of saving was
in terms of physical assets but it has started to shift now to financial instruments. This trend
partially reflects the relentless expansion of the various branch networks of the financial
institutions into the county's rural areas and partially holds the increasing trend of the easy
accessibility of the alternative investment opportunities. This is just because of technology as
nowadays technology is playing important role for financial advisory business. This was proved
during cold calling and personal interviews done with respondents. After explaining them
technical advantages of NJ with other companies. Respondents stated NJ is far more better than
other companies in technological support.
~50~